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tv   Your World With Neil Cavuto  FOX News  October 3, 2012 4:00pm-5:00pm EDT

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don't worry,f you don't want to leave the united states forever they will give you a return ticket, as well. jetbluto the rescue for those politically frustrated folks, when your guy loses. that's it for "studio b." now "your world." >>neil: thank you. indeed, we are here for the big debate looking at all sides of it on a day we doled that the economy will be front and center. also, on a day we got two extreme sets of numbers on the economy the one painting a pretty good picture, the other not so promising. but an issue we are told mitt romney wants to bring present and center tonight is the debt. how much we as a country owe. at $16 trillion, plus, remember, it was republicans would made that debt clock a big deal. they want to make a big deal of it tonight. they are saying it strangles america's ability to get a handle on finances and your very
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future. a lot of parents are less optimistic for their kids obtaining anything approaching the success they had. if that is true it would be a generational first and something we will hear spun in the spin room which we are broadcasting. this is one of the fascinating developments about a debate. this is the place where both the head of the the -- ahead of the debate and after the debate, each side tries to sell their story. one side saying, withheld your expectation and the other side saying the economy is not doing better and they will try to outline how their guy will make it better but hold off on the grand expectations because this is mitt romney and he does not have the flare and the elegance of one president obama. ahead of things they keep expectations down. after things, they raise the bar. to the debt and how they sell
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this out far, the republican congressman from the fine state of florida. we are told, congressman, this debt will be a big issue. although there is great risk to that, a lot of folks say that it makes people's eyes glaze over. there is a good strategy, actually, to that. what tour make of that? >>guest: afternoon, neil. it has to be a huge issue. this debt we have is not only threatening our economic security but it is threatening our national security. when you understand that here in less than four years we have gone from $10.6 trillion in debt to over $16 trillion in debt, the debt per person in the united states america has gone from $34,000 to close to $51 $51,000. we need to look at things such as the gasoline prices which on inauguration day for president obama was $1.84. now we are close to $4. think of the tens of thousands that have been spent for families to keep up with the gas
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prices, the high commodity prices we see in the grocery stores that are continuing to cause us trouble and the fact that we have an incredible unemployment situation in the united states of america at -- that is not reflected in 8.1 percent. we need the right regulation policies and tax policies to get small businesses funding, make sure we are open for business and we can get production and manufacturing back here and get people back to work. it is important to talk about that after a revision of the g.d.p. numbers in the second quarter down to 1.3 percent. that is below anemic. we are not out of the fiscal woods yet. >>neil: we talk about economic numbers. you preferred to the g.d.p. data. just today, congressman, we had surprisingly strong growth in private sector numbers that may or may not mirror what happens on friday, a gain of 162,000, but, all of this is on the same
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day a number of companies are were watching that things do not look good and there could be an earnings recession. what do you think is the real state of the economy right now and what mitt romney has in his position tonight? >>guest: the most important thing is mitt romney needs to show that the president and his previous budget that he has proposed with trillions of dollars in new taxes only does one thing: it grows the debt. it does not do anything if the deficit we have had. you give the bigger growth to the federal government. we have to have policies that provide the certainty to the private sector, the policies that enable them to grow. again, this is not saying we don't need any regulation but we need to have smart regulations. in california dairy year 2011, 71,000 pages of new regulations were institutessed. the people in the coal industry, when you look at what has happened to them when we could not get cap and trade moved through they are getting
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decimated. we have to have a vision like ronald reagan said, talking about a new dawn for this american economy. >>neil: congressman, you are among those who were brought in, in the republican avalanche that brought in 83 republicans and that tipped the house of representatives to the republicans and made john boehner speaker. you are in a race if your life with an ad everyone is talking about. the fact of the matter is, republicans seem to not have quite that same wind behind their back. they might get it, and you often remind me, polls are fleeting, but are you concerned the passion that brought you to office is not there as were? >>guest: no i am not concerned about that. what i see on the ground is you do not see the hats and the t-shirts we can rhetoric of 2008.
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the american people know something is not right. it is very important as we go into the debating series that we articulate what is not right. what is happening in washington, dc? what the failing policies? how do we bring that home to the american people and make it a dt direction? you look at what we have been able to accomplish if the house of representatives, we pass budgets and we passed appropriations bills. we mandated constitutionally, and the senate is not doing it. we have not had a budget passed. how do we know what we are supposed to do? >>neil: do americans sting win, they give congress lower ratings unanimous the -- lower ratings than the president. >>guest: that is a responsibility of each of us should have, explaining to our constituency the situation, explain to them what we do. that is why i do a weekly report
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to give people a legislative update. they know the schedule. they know what i have done with meetings and hearings. they are part of experience. >>neil: thank you, we reached out to the opponent, patrick murphy, but we have yet to hear back. thank you, congressman. >> we talk a lot about how both sides no matter how the election towns out will have to hold hands and get a lot of these problems taken care of. at the end of the year we have the bush tax rates expiring and all the sequestration cut taxpayer kick in. a guy trying to reach across the aisle and democrat senator mark udall from this fine state of colorado. senator, regardless of who wins, can either side let bygones be bygones? you tried to reach across the aisle by looking at a balanced budget amendment and other
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things that republicans have wanted and democrats do not. not too many follows up on that or many republicans on the other side to follow up on what democrats like. there is still a lot of ill will out there, is there not? >>guest: welcome to colorado. we are excited to host the debate tonight on a beautiful fall day here. to your question, we have to let by gones be bygones. i appreciate the shout out. we need to start with the simpson-bowles architecture and we ought to add lower rates generating more revenue. the country's future depends on getting our fiscal situation right. i'm a person that thinks home springs eternal. we go back to work after the election concludes and i hope we do what we need to do as soon as possible so some of the terrible dynamics, or the events you alluded to do not unfold like the sequester or the tax cuts
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expiring with no focus on how to change the tax code. >>neil: regardless, and i am into the blame game, but i wonder --. >>guest: i blame both sides. so let's set aside the blame game and sit down and go do work. >>neil: very good point. what i was going to say is, we do have the expiring rates and we do have so much that has to be done including the medicare thing, the things all hitting at the same time. is it fair to say as a number of republicans and democrats have told me, they could just extend egg, including rates for the well-to-do for another three months, six months, regardless of who wins, to do this with clear eyes. >> i can tell you that worries
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me a little bit if we don't put hard and fast triggers in place so we do not, to use the very warm turn, kick the town down -- kick that can down the road. if we need to do that to create some certainty and confidence in the market that is great but we have do put in place mechanisms to force the congress to have an up-and-down vote. we need have a commission to make recommendations across the board and we get an up-and-down vote. >>neil: sounds easy. >>guest: the most important thing is to get our fiscal house in order. >>neil: we are going to be exploring this fiscal house of hours on our special coverage on fox business network tonight, talking about your money and your future. the co-chairman of the debt commission says if either side
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misses the opportunity to do something, and soon, before the end the year, you can kiss this country goodbye. he is very angry. and the home depot founder is joining us, and sarah palin, and governor of maryland on how both sides can bridge this gap. obviously, there is a big concern here about how the swing states go in the interim because until this debate on what we do in washington is decided, a number of big states have to be decideed. one thing we think will come out is the let we sent to defense contractors on the part of the administrations urging them to hold off announcing layoffs that are automatically set to happen among defense workers because of the sequestration cuts. both republicans and democrats agreed to that. the virginia's former governor wilder on how that could have a very big impact tonight not only
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for those listening and the candidates involved but for virginia itself. virginia is the home to a lot of the defense workers.
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>>neil: we are told the crowd cannot applaud or chant or anything like that. sometimes it cannot be controlled. what happens in this room tone, like we won't stay in this room, if people at home are shocked, chances are people in this room will be shocked. we will be on it. all of it. every potentially embarrassing second it tonight.
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that is what is in story tonight. one thing republicans are seizing on is the letters this have gone out to a lot of defense contractors. is this wise? they are being told not to put out notices that they will lose their jobs because of automatic sequestration cuts. these letters have to go out, that is the way it generally works, when automatic spending cuts go out and they are helped in stone, does this mean they are not etched in stone? does this mean the president is playing politics here, to former virginia governor wilder, home to a number of against contractors which would be vulnerable to the cuts if they pass. governor, it doesn't pass the sniff test to many, that the
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president or the white house in john would intervene in the issuing letters that are routine anyway in the event of cuts that are coming. it doesn't look good. what do you think? >>guest: i hope that is not the case of intervention, neil. if it is going to happen, as you properly put out, it has to happen. one of the things that had befuddled a lost americans during this election period that many of them are taken for pools, stupid, don't know what is going on, and we will tell way is important and what is not important. we know there are going to be cuts. we know there are going to be the cuts. the question is, when and where? virginia relies on against spending with the numbers of contract orders here and the defense installations we have in our state, our wonderful state.
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that is not going to help to play politics with it. i would happy that is --. >>imus: those people have to rely, governor, they have to realize that the sequestration cuts are out there, and both parties are trying to avoid them, but it is out there and it behooves the president or anyone else to let them know this is likely you should land -- plan accordingly. can you see why republicans, it smacks them, as trying to politicize something in a crucial swing state? colorado, this state is another, where against layoffs could be very much a problem for the administration, days before the election, >>guest: that is why i say two things: people are not fools. they are not stupid. we know with the sequestration
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ahead, the cuts will take place in the absence of a development it -- deal. i hope it is not politicized to the extent of interference. i have not concluded that is the case. i hope it is not. very is very, very important for the election. right now, notwithstanding what anyone tells you about the polls, the only people i am concerned about is the one taken on election day. >>neil: the polls right new, governor, the polls now, sir, show a slide lead for the president in virginia. this was a state that the president took from the republicans four years ago the it has been close, pretty much ever since, and has been benefiting from an improved economy and lower-than-average national unemployment rate with businesses coming back. the republican governor likes to say that is on me, not that guy, where do you think virginia ultimately breaks?
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>>guest: i think that virginia is a toss up state right now notwithstanding the polls. people will say one thing and do another. many people will be voting for obama would will say to pollsters that they vote for obama. the issue is, whether they will be exercised and excited to town out for obama, the same degree of excitement is not prevalent. >>neil: you are not in the camp that there is a "fix" in the polls but you think they can be skewed? >>guest: i don't rely on the polls. i talk to pundits around the country and the state i can tell you that many of them believe that if the election were hold today the likelihood would be that romney would not be the winner. on the other hand, they would tell you that in the percentage of error of plus or minus three or four, this state is still
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considered by many to be a toss up. i consider it a toss up state. >>neil: we shall see, governor. always a pleasure. the president has arrived. the airport is a long way from here. about four four loco -- four hours from here. so fast and smooth, you'll forget you had heartburn. ♪ tum tum tum tutums [ male announcer ] tums smoothies. i knew it'd be tough on our retirement savings, especially in this economy. but with three kids, being home more really helped. man: so we went to fidelity. we talked about where we were and what we could do. we changed our plan and did something about our economy. now we know where to go for help if things change again. call or come in today to take control of your personal economy. get free one-on-one help from america's retirement leader.
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>> this is deadly earnest. how they can justify, how they can justify raising taxes of the middle class that has been buried the last four years, how if lord's name can they justify that? >>neil: it is a gaffe that now is a romney ad campaign since the vice president started talking about the middle class
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getting buried, republicans have wasted barely a nano second capitalizing. the question tonight is whether it becomes a focus of the debate with mitt romney using the vice president's words against his boss. the president of the united states. why a romney economic adviser says that would be a very good idea. andy is next. andy, what do you think of that? the vice president is claimings maybe it was an unintended slip that the middle class is buried, but it doesn't help the boss' cause. >>guest: i hope the governor says they are buried l is mounting death, chronic unemployment and incomes are falling. of course they buried. we need a change. we need a change of policy. we cannot have four more years like the four we have had. it is a great point.
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>>neil: what he also is saying , if mitt romney had his way, taxes would go up on the middle class. obviously governor romney says that is not the case but this downed frommen middle class would be even more down trodden. how should, if that comes up, the governor spend to that tonight? >>guest: there are two ways. he is proposing a 20 percent cut in the marginal rates for everyone. he is also proposing getting rid of capital gains if middle class l is no preliminary to raise taxes on the middle class. that is made up. it is not true. what governor romney needs to do in the campaign, i think, is to establish there are two distinct visions here. one vision is, you don't know what will happen in the next four years with the economic policy or with international policy. there are two ways to look at things: one is how the president looks at it. every solution is government, government, government. that is you who he will approach problems including tax and the
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middle class. governor romney will approach problems as someone who wants to support the private sector, would believes in economic and individual freedom, wants to release the american spirit and release the entrepreneurial spirit. we do not need to increase taxes on the middle class. i don't care what the democrats say, i don't care how many times they say it, repeating it doesn't give it veracity. it is not true that the governor plans to raise taxes on the middle class. >>neil: but he is looking at lowering tax rates for everyone at 20 percent but giving more details, saying that by one count he could limit overall deductions of $17,000 between mortgage interest charity, whatever way you want to break it down and health-related costs, 70,000 would be a given cap. that is quote a bit under what a last americans typically write off and what most americans do.
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is there a possibility that could boomerang on governor romney with people saying you are lowering my rate but i pay more because you are taking away most of my deductions? >>guest: what the governor is committed to and obviously, the ultimate tax plan will depend on with we can go out of congress, the governor's promise is we will lower marginal rates by 20 percent. that included on the middle class. we will eliminate some deductions. but not dictions sufficient to take the taxes up. we hope the middle class will have a tax reduction even with the elimination of deductions and putting a cap on deductions actually gives more credibility because you can give the middle class more deductions. the governor also said if you have more incomes, you pay lower caps, in other words $17,000. the idea that taxes on the well-to-do and the successful and those who are making a lot money will not go down.
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middle classing we hope they will stay where they are, or come down. coming down is a possibility. the important part of this tax plan, is to remember, when you earn, say you earn $200,000 and you have $20,000 worth of deductions, so now you paying tax on $180,000. if you paid tax at 35 percent rate, obviously the rate will be below $35 percent because you do not pay on full $200,000. governor romney is saying reduce that rate and every dollar you earn offer the amount that uses up the tax deductions, you will pay the lowest rate on. it will encourage people to earn more money, the lower the marginal rate the less tax you pay on the next dollar you earn which is encouraging people to earn more money and encourages growth. there is a growth-based tax plan not an increasing rate to increase revenue. >>neil: he will have to sell that out because the numbers, you can read them a last ways. andy, always a pleasure my
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friend. a key economic adviser to mitt romney. we are told the president is already here, right here in the auditorium next to me right now. there are no cameras about in there but he is sizing up the room and the podium. that is what they do. we have been this there. it is very red. a lot of red going on. a lot of blue going on. and a lot of white going on. it is a patriotic theme. he is getting the lay of the land. ment mit -- mitt romney will get the same treatment when he goes in there when they go at it in 4 1/2 hours. this debate will be about the economy but it is possible the economic impact of decisions made on actions abroad could come up. don't be surprised if the libya thing finds its way into the debate tonight, not is watch went down there, but what the president knew about what was going down there and when he knew it. giuliani on the numbers that don't add up and the recall that
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>>neil: the focus of the debate at the university of denver is the economy, foreign affairs come up in the next debate, but the problem with this theme is, do you leave out libya? do you leave out the latest allegations the president may not have been straightforward with us about what the white house knew and when it knew it
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when it refused to call this a terrorist attack? in fact, the president himself has not really used those words directly linking that event to al qaeda or other nefarious groups that may or may not have seized on more than just a shoddy film without the prophet mohammed. the former mayor giuliani of the fine state of new york is here now. you draw a crowd. i thought they were here for me and i realized --. >>guest: i were, they were, i was fending them off. >>neil: an issue like this can come up. >>guest: of course. it is timely. you cannot be terribly rigid. this is a major issue going on right now involving something that is enormously important to us. the it looks like from the beginning the white house was covering this up. we are trying to preserve its own narrative in the middle east, the arab spring was wonderful and everything was working.
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al qaeda is again. you have a whole paper trail of a lost warnings that the administration ignored. it is hard to explain why they did not increase security for the ambassador. pretty hard to explain how they did not pick this up as a terrorist attack the meant they heard, happening on 9/11. suddenly, boom, rocket from peopled hand grenades are being used? it took me two seconds it figure it out. it took me three seconds to figure out it was an al qaeda attack. i cannot imagine there were not people in the administration, in their security and intelligence areas that remain not telling them that. >>neil: we are told the ambassador's diary he indicates he was concerned f he is concerned about his safety, chances are he sent cables or similar warning.
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>>guest: the private security people were --. they will do everything they can to put it off until after the election. i believe president obama has been weak in ineffective leader, and this is another example of that, showing ania where we thought he had strength. he has his own fantasy of what terrorism really is. he has his own fantasy of the middle east. the arab spring is tossing out mubarak and overthrowing muammar qaddafi and not making plan or slowing it down the way hillary clinton wanted originally so he could in an intelligent and adult way create another government there that would not be muslim brotherhood. it looks like the people who did this were released from egypt because of the arab spring. what does the arab spring bring us? the terrorist that killed our ambassador. thank you. >>neil: here is where the money issue can come in. there is a debate now in our
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country, whether we should still be giving money to the middle east, libya, cairo, anywhere in this environment where whatever we do give it comes back to boomerang us or they are trying to kill us, so stop it. the administration has already requested more money for egypt. what should mitt romney do or say about that? >>guest: i would say i put more strings around it and hold it up. i would nut take the money away this is not about money but our pulling out militarily. this is all happening because harry reid, president obama, and all geniuses gave us the idea that we should have a timetable on a war. so we started this in 2006 putting the pressure on president bush. a timetable? there is no such thing as a timetable for war. we should leave afghanistan when people there in that part of the world stop planning to come here and kill us. we should be this until that is offer. we node a military presence
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there. a lot of what is happening in afghanistan because karzai has no place to go --. >>neil: do you think al qaeda is restrengthening? >>guest: they do not see american troops in afghanistan and see as dwindling number of our troops in afghanistan and that area of the world. what they going to do? come out of hiding and do what they will do. >>neil: a problem you would mention tonight? >>guest: i know 65 percent of the membership want us out of there, but this is where it take being a president and a leader we cannot be out of there. an american president has to stand up and explain this to the american people the we have to be there until the threat in the middle east is over and that mean a massive military presence. we will not get the quality of intelligence we were getting when we had 100,000 troops that. that will hurt us with a possible attack here in america. >>neil: thank you very much.
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i think. after that. >>guest: i am pretty ominous. the debate will not be about that. pretty darned important. >>neil: thank you, mayor, you can whip up a crowd here. i thought it was to me but that was not the case. we will look here at a couple of other developments including you just don't want people to support you after a debate and get undecided off the fence. you want money to keep coming in. that's what this is about with five weeks to go both campaigns still have a big question on would scores tonight in ..
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>>neil: economic statistics can be played both ways. the good news on jobs is something the president will crow about. i am specifically talking about a private sector survey that was, surprisingly, well, strong.
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on the bad side, news from h.p. indicating that it is not at all confident about the economy this year and into next year. each candidate pouncing on a theme that echoes its face. first, things are getting better. the other? no, they are not getting better at all. >> that is what will be fascinating, folks. i was getting ready for the debate and i did a ledger in my hotel room. i look at all the good economic numbers are those better than expected because that is the new rule of thumb and all the not so great numbers. we have had some fairly pathetic numbers in the 3 1/2 year recovery and now we have gotten use to them. when we meet expectation as we do with a last them including a survey that shows private sector growth is growing, we lose sight of the fact that at this stage of recovery it should be a lot more. that gets to, i think, the basis of what will be argue the
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tonight. steady as she goes, is that good enough? do you like what you have seen? my guest is a big backer of romney says that is not good enough getting used to barely good enough does not cut it. the auntilcy is something like better doesn't mean good, right? >>guest: that is a good way to put it. you have gone to journalism school. >>neil: i left out the business mogul training. >>guest: i hope i won't upset you too much. so much of this is media hype about the big debate. why see the wisdom of taking a 90-minute segment with the two combatants to four years history. if we lock back at four years, that is what we want to make our decisions upon. not the 90 minutes. i know you have to make a living so it is okay. >>neil: foster i will bring up
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you up to speed on a couple of quick things i am doing a one hour live show on this subject and tonight on fox business network i am devoting four hours to it. here is where i tell you, mr. party pants millionaire, lay along. to that issue -- just kidding. to the issue of the economy and what you make of it, the argument against romney is that he makes a very powerful academic case for how lousy it is and how much better it could be but he lacks the passion to close that case, to close that deal. rick santorum who you backed early are said the same. that we would rue the day when he heard a general debate with president obama as a result. what do you think? >>guest: well, i don't think it is important that he closes the deal in terms of is the economy good or bad. the important thing is, neil, how do you contrast the investment acumen where mitt
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romney created the various staples and the companies versus president obama investing our taxpayer dollars in solyndra. that is a clear contrast and what we want did lock at rather than an assessment of the who today and it is more pent as to what it will be tomorrow. look the at contrast on energy policies. president obama considered all of the coal and petroleum and oil and gas as a liability and wants to replace it with wind and solar. i think mitt romney looks at those as a major asset and it will be a major asset to we harness those things. thing of all those we would put to work mining and developing the resources and the keystone pipeline. that is the issue. the debate of status of the economy, that is just not in the ballgame as far as i'm concerned. it is would will do the investing of our tax dollars the
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best in the next four to eight years. >>neil: foster, a lot of made in this limited time, about all money each campaign has and the respect against mitt romney is during the convention he managed to get outspent by president obama 6-1. obviously the romney campaign felt that airing the ads closer to the election is more bang for the buck and now one in three voters will have voted long before the election. does the make you as sharp a finance guy, question the wisdom of that strategy? it could pay off. but it looks like he is at least advertising disadvantage to the president right new. >>guest: if you look at some of the major campaigns, meg whitman, it is more than money. money was the big factor in politics in the old days. today, information is power. what is happening with the social media and you guys on tv,
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that is what is driving the voters more continue money. the ads can only do a limited amount. when you look at scott walker's situation in wisconsin, it was the troops on the ground that went door-to-door telling folks what the truth was. truth previlled. >>neil: i let that comment guy, you guys on tv. you see if you can read a tell prompter as well as me, young man. always a pleasure, foster. making his final appearance on this show. we have a lot more coming up including what to make of the state we are in. this is the crucial battleground state and right now it is as tight as a tick. there are reasons for that.
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>>neil: coming to you from denver, colorado, this state amazes me, it is a crucial battleground state. you would think the attention would be on florida, ohio, wisconsin, with more electoral votes but it is here, a crucial swing state. very tight. so far, the president is ahead here. it is a state he won easily four years ago. it is a state that has a hire unemployment rate than the national average. it has come down but it is still around 8.2 percent. we have congressman gardner joining us, a republican from colorado, a necessarily tight race. >>guest: it is a tight race if a state that president obama won by nine points, accepted the nomination, and signed the stimulus bill here, the fact that mitt romney is close, i
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think, pulling ahead right now, this says a lot about this president's failures. >>neil: i notice this poll has closed over the last couple of weeks and a lot of the swing state polls have closed for mitt romney. it is not getting much press but he is still behind in most of them but he is were closer. what is going on? >>guest: people look at a state like colorado which has made its name on entrepreneurs through venture capital, small businesses, going out and doing great things in tech and renewable energy, this state has been hit hard by the economy. the president has made things worse. he has turned around and attacked small business. that does fought fly in colorado. >>neil: going back to congress , what do you think will happen on sequestration? the tax cut thing? everything -- everything is piling up on the runway at the same time.
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>>guest: the middle class will be the hardest hit, the tax increases they will feel thousands of dollars. what happens, congress has to fix it. at the of it will hinge on november 6, if mitt romney is in this we will put a package together. >>neil: does that mean extending everything for three to six months until we, in this case, the new president gets a handle on it. would you suggest the same if the president is re-elected? >>guest: we do need to citizen it so we provide certainty, so we do not do harm to businesses and get to real work and actually provide comprehensive tax reform. >>neil: is it your gut feeling, then, this is extended six months? >>guest: three to six month extension. you are looking at -- for everything. so we can have a meaningful conversation. if it is romney for certain. if it is president obama i worry whether he will allow the taxes to occur and run it over the cliff on january 1.
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>>neil: thank you very much, congressman. >>guest: thanks for being here. go have some green chili. >>neil: we will come back and get the lay of the land in about four hours.
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♪ ♪ >> neil: all right. so let me get the math right. down by five points in the polls. seven out of ten no chance of winning. expectations on the electorate that his opponent is 90% likely to win and. i'm not talking about mitt romney today. i'm talking about mitt romney ten years ago this month campaigning for governor of massachusetts. at this point then, he was similarity down in the polls. at this point, he was similarly dismissed. at t

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